“We want to make sure anyone can start, grow, and invest in a business in Ontario,” said Fedeli. “This will help credit unions better manage risk and compete, while expanding access to financing for their small-business customers.”

In a group loan, also known as loan syndication, each member of a group of lenders funds a varying portion of a loan to a single borrower. The proposed change to regulations would occur under the Credit Unions and Caisses Populaires Act, 1994. The change is supported by the Deposit Insurance Corporation of Ontario.

“Credit unions welcome this announcement,” says Canadian Credit Union Association President and CEO Martha Durdin. “By taking a sensible approach to bank-led loan syndications and red tape reduction, the Ontario Government is helping the province’s 79 credit unions grow and create opportunities for their 1.5 million members and nearly 150,000 small business owners.”

This measure is part of a package of reforms accompanying the recent introduction of Bill 66, the Restoring Ontario’s Competitiveness Act. Other measures to cut job-killing red tape include allowing private employers to merge their single-employer pension plans with jointly sponsored pension plans, thereby reducing pension risks. The government also plans to ensure industrial property tax assessments by the Municipal Property Assessment Corporation (MPAC) are based on current permitted uses, not speculative uses.